Full Press Release Details
| NEWS | FONAR CORPORATION | |
| For Immediate Release | The Inventor of MR Scanning | |
| Contact: Daniel Culver | An ISO 9001 Company | |
| Director of Communications | Melville, New York 11747 | |
| E-mail: investor@fonar.com | Phone: (631) 694-2929 | |
| www.fonar.com | Fax: (631) 390-1709 |
FONAR Announces Fiscal 2016 1st Quarter
Diluted Net Income per Common Shares Available to Common Stockholders
increased 13% to $0.43 per share for 1st Quarter Fiscal 2016 versus same quarter one year earlier.
Net Income Available to Common Stockholders increased 13% to $2.7
million for 1st Quarter Fiscal 2016 versus same quarter one year earlier.
Net Income increased 6% to $3.5 million for 1st Quarter Fiscal
2016 versus same quarter one year earlier.
Income from Operations for 1st Quarter Fiscal 2016 increased 5%
to $3.6 million versus same quarter one year earlier.
Total Revenues for 1st Quarter Fiscal 2016 decreased 2% to $17.6
million versus the same quarter one year earlier.
YORK, November 9, 2015 - FONAR Corporation (NASDAQ-FONR), The Inventor of MR Scanning , reported its first quarter fiscal
2016 results for the quarter ended September 30, 2015. FONAR is the first Company in the MRI industry to manufacture an MRI (Magnetic
Resonance Imaging) scanner. The Company's two industry segments are: development, manufacturing and servicing of the UPRIGHT
Multi-Position MRI, and management of Stand-Up MRI (UPRIGHT MRI) centers. FONAR's substantial list of patents
include recent patents for its technology enabling full weight-bearing MRI imaging on all the gravity sensitive regions of the
human anatomy, especially the brain, extremities and spine
FONAR's newest works-in-progress technology for visualizing and quantifying the flow of cerebrospinal fluid (CSF) which circulates
throughout the brain and vertebral column at the rate of 32 quarts per day. Imaging and quantifying the dynamics of this vital
life-sustaining physiology of the body's neurologic system has been made possible by FONAR's introduction of the MRI
and its latest works-in-progress for quantifying CSF in all the normal positions of the body, particularly in its upright flow
Multi-Position MRI scanner is the world's only MRI scanner licensed under FONAR's multiple UPRIGHT MRI
patents to scan all the patient's body parts in their normal full weight-bearing UPRIGHT position.
Total Revenues - Net for the quarter
ended September 30, 2015 were $17.6 million as compared to $18.0 million for the corresponding quarter ended September 30, 2014.
Net Income for the quarter ended
September 30, 2015 increased 6% to $3.5 million as compared to $3.3 million for the corresponding quarter ended September 30, 2014.
Income from Operations for the quarter
ended September 30, 2015 increased 5% to $3.6 million as compared to $3.4 million for the corresponding quarter ended September
Basic Net Income per Common Share
Available to Common Shareholders for the quarter ended September 30, 2015 increased 13% to $0.44 as compared to $0.39 for the corresponding
quarter ended September 30, 2014.
Diluted Net Income per Common Share
Available to Common Shareholders for the quarter ended September 30, 2015 increased 13% to $0.43 as compared to $0.38 for the corresponding
quarter ended September 30, 2014.
Total Assets at September 30, 2015
were $79.0 million, as compared to $76.5 million at June 30, 2015.
Total Current Assets at September
30, 2015 were $46.9 million, as compared to $43.6 million at June 30, 2015.
Total Cash and Cash Equivalents at
September 30, 2015 increased 16% to $11.0 million, as compared to $9.4 million at June 30, 2015.
Total Liabilities at September 30,
2015 were $26.0 million, as compared to $25.7 million at June 30, 2015.
Total Current Liabilities at September
30, 2015 were $19.7 million, as compared to $18.8 million at June 30, 2015.
Earlier this year, a medical monograph
was published by S. Karger, AG based in Basel, Switzerland (see www.karger.com/Book/Home/261956). It is titled "The Craniocervical
Syndrome and MRI," and highlights the FONAR UPRIGHT Multi-Position MRI. It also highlights the recently discovered
syndrome that shows how neck injury can interfere with cerebrospinal fluid (CSF) flow in the brain, causing a variety of brain
diseases. For more details and a press release visit www.fonar.comnews/050515.htm
Management Discussion
Raymond V. Damadian,
president and chairman of FONAR Corporation said, "The Company continues to focus on ways to increase revenue and net income.
We are still concerned about potential cuts in MRI reimbursement rates, however we will continue to explore all opportunities to
expand our capacity. Various new applications of FONAR's UPRIGHT MRI technology can deliver additional positive results
to patients, referring doctors and our shareholders."
case," said Dr. Damadian, "the success for our managed Stand-Up MRI centers is because physicians have come to understand
that they will obtain BETTER PATIENT OUTCOMES' from the treatment of patients if they obtain their images, (particularly
the spine) with their patients in their usual upright fully weight-loaded symptom generating positions. They understand that they
run the risk of failure to visualize structural abnormalities in the spines of their patients that could result in poor outcomes
from their treatment. Obtaining their patients' images in the fully weight-loaded multiple positions provided by
FONAR's UPRIGHT Multi-Position MRI can significantly reduce the prospect of poor outcomes."
(NASDAQ:FONR), Melville, NY, The Inventor of MR Scanning , was incorporated in 1978, and is the first, oldest and most experienced
MRI company in the industry. FONAR introduced the world's first commercial MRI in 1980, and went public in 1981. FONAR's
stellar product is the FONAR UPRIGHT MRI (also known as the Stand-Up MRI), the only whole-body MRI that performs Position
imaging (pMRI ) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension,
as well as the conventional lie-down position. The FONAR UPRIGHT MRI often sees the patient's problem that other scanners
cannot because they are lie-down and "weightless" only scanners. The patient-friendly UPRIGHT MRI has a near-zero
claustrophobic rejection rate by patients. As a FONAR customer states, "If the patient is claustrophobic in this scanner,
they'll be claustrophobic in my parking lot." Approximately 85% of patients are scanned sitting while they watch a
42" flat screen TV. FONAR is headquartered on Long Island, New York.
and STAND-UP are registered trademarks and The Inventor of
MR Scanning , Full Range of Motion , Multi-Position , Upright Radiology ,
The Proof is in the Picture , True Flow , pMRI , Spondylography , Dynamic ,
Spondylometry , CSP , and Landscape , are trademarks of FONAR Corporation.
may include forward-looking statements from the company that may or may not materialize. Additional information on factors that
could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange
CONSOLIDATED BALANCE SHEETS
shares in thousands, except per share amounts)
| September 30, 2015 | June 30, 2015 * | |||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 10,973 | $ | 9,449 | ||||
| Accounts receivable - net | 4,591 | 3,791 | ||||||
| Accounts receivable - related party | 90 | - | ||||||
| Medical receivable - net | 9,442 | 9,082 | ||||||
| Management and other fees receivable - net | 14,484 | 14,058 | ||||||
| Management and other fees receivable - related medical practices - net | 3,600 | 3,507 | ||||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 682 | 682 | ||||||
| Inventories | 2,296 | 2,192 | ||||||
| Prepaid expenses and other current assets | 775 | 860 | ||||||
| Total Current Assets | 46,933 | 43,621 | ||||||
| Deferred income tax asset | 8,423 | 8,423 | ||||||
| Property and equipment - net | 12,439 | 12,901 | ||||||
| Goodwill | 1,767 | 1,767 | ||||||
| Other intangible assets - net | 8,647 | 8,950 | ||||||
| Other assets | 818 | 830 | ||||||
| Total Assets | $ | 79,027 | $ | 76,492 |
*Condensed from audited financial
CONDENSED CONSOLIDATED
shares in thousands, except per share amounts)
and Stockholders' Equity
| September 30, 2015 | June 30, 2015 * | |||||||
| Current Liabilities: | ||||||||
| Current portion of long-term debt and capital leases | $ | 2,478 | $ | 2,490 | ||||
| Accounts payable | 1,595 | 1,783 | ||||||
| Other current liabilities | 8,764 | 8,253 | ||||||
| Unearned revenue on service contracts | 4,714 | 4,187 | ||||||
| Unearned revenue on service contracts - related party | 83 | - | ||||||
| Customer deposits | 1,939 | 1,938 | ||||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 142 | 142 | ||||||
| Total Current Liabilities | 19,715 | 18,793 | ||||||
| Long-Term Liabilities: | ||||||||
| Deferred income tax liability | 510 | 510 | ||||||
| Due to related medical practices | 233 | 237 | ||||||
| Long-term debt and capital leases, less current portion | 5,088 | 5,699 | ||||||
| Other liabilities | 485 | 469 | ||||||
| Total Long-Term Liabilities | 6,316 | 6,915 | ||||||
| Total Liabilities | 26,031 | 25,708 |
*Condensed from audited financial
CONDENSED CONSOLIDATED
shares in thousands, except per share amounts)
and Stockholders' Equity (Continued)
| STOCKHOLDERS' EQUITY: | September 30, 2015 | June 30, 2015 * | ||||||
| Class A non-voting preferred stock $.0001 par value; 453 shares authorized at September 30, 2015 and June 30, 2015, 313 issued and outstanding at September 30, 2015 and June 30, 2015 | $ | - | $ | - | ||||
| Preferred stock $.001 par value; 567 shares authorized at September 30, 2015 and June 30, 2015, issued and outstanding - none | - | - | ||||||
| Common Stock $.0001 par value; 8,500 shares authorized at September 30, 2015 and June 30, 2015, 6,062 issued at September 30, 2015 and June 30, 2015; 6,051 outstanding at September 30, 2015 and June 30, 2015 | 1 | 1 | ||||||
| Class B Common Stock (10 votes per share) $.0001 par value; 227 shares authorized at September 30, 2015 and June 30, 2015; .146 issued and outstanding at September 30, 2015 and June 30, 2015 | - | - | ||||||
| Class C Common Stock (25 votes per share) $.0001 par value; 567 shares authorized at September 30, 2015 and June 30, 2015, 383 issued and outstanding at September 30, 2015 and June 30, 2015 | - | - | ||||||
| Paid-in capital in excess of par value | 175,448 | 175,448 | ||||||
| Accumulated deficit | (133,487 | ) | (136,349 | ) | ||||
| Notes receivable from employee stockholders | (30 | ) | (32 | ) | ||||
| Treasury stock, at cost - 12 shares of common stock at September 30, 2015 and June 30, 2015 | (675 | ) | (675 | ) | ||||
| Total Fonar Corporation's Stockholders' Equity | 41,257 | 38,393 | ||||||
| Noncontrolling interests | 11,739 | 12,391 | ||||||
| Total Stockholders' Equity | 52,996 | 50,784 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 79,027 | $ | 76,492 |
*Condensed from audited financial statements.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
shares in thousands, except per share amounts)
| THREE MONTHS ENDED SEPTEMBER 30, | ||||||||
| REVENUES | 2015 | 2014 | ||||||
| Product sales - net | $ | 18 | $ | 1,271 | ||||
| Service and repair fees - net | 2,284 | 2,491 | ||||||
| Service and repair fees - related parties - net | 28 | 28 | ||||||
| Patient fee revenue, net of contractual allowances and discounts | 8,114 | 6,787 | ||||||
| Provision for bad debts for patient fee | (3,507 | ) | (3,146 | ) | ||||
| Management and other fees - net | 8,829 | 8,738 | ||||||
| Management and other fees - related medical practices - net | 1,845 | 1,816 | ||||||
| Total Revenues - Net | 17,611 | 17,985 | ||||||
| COSTS AND EXPENSES | ||||||||
| Costs related to product sales | 112 | 1,085 | ||||||
| Costs related to service and repair fees | 543 | 507 | ||||||
| Costs related to service and repair fees - related parties | 7 | 6 | ||||||
| Costs related to patient fee revenue | 2,228 | 1,899 | ||||||
| Costs related to management and other fees | 5,419 | 5,590 | ||||||
| Costs related to management and other fees - related medical practices | 1,058 | 979 | ||||||
| Research and development | 436 | 397 | ||||||
| Selling, general and administrative | 3,775 | 3,578 | ||||||
| Provision for bad debts | 418 | 506 | ||||||
| Total Costs and Expenses | 13,996 | 14,547 | ||||||
| Income From Operations | 3,615 | 3,438 | ||||||
| Interest Expense | (150 | ) | (204 | ) | ||||
| Investment Income | 50 | 62 | ||||||
| Income Before Provision for Income Taxes and Noncontrolling Interests | 3,515 | 3,296 | ||||||
| Provision for Income Taxes | 50 | 40 | ||||||
| Net Income | 3,465 | 3,256 | ||||||
| Net Income - Noncontrolling Interests | (603 | ) | (721 | ) | ||||
| Net Income - Controlling Interests | $ | 2,862 | $ | 2,535 | ||||
| Net Income Available to Common Stockholders | $ | 2,676 | $ | 2,370 | ||||
| Net Income Available to Class A Non-Voting Preferred Stockholders | $ | 139 | $ | 123 | ||||
| Net Income Available to Class C Common Stockholders | $ | 47 | $ | 42 | ||||
| Basic Net Income Per Common Share Available to Common Stockholders | $ | 0.44 | $ | 0.39 | ||||
| Diluted Net Income Per Common Share Available to Common Stockholders | $ | 0.43 | $ | 0.38 | ||||
| Basic and Diluted Income Per Share - Class C Common | $ | 0.12 | $ | 0.11 | ||||
| Weighted Average Basic Shares Outstanding - Common Stockholders | 6,050 | 6,050 | ||||||
| Weighted Average Diluted Shares Outstanding - Common Stockholders | 6,178 | 6,178 | ||||||
| Weighted Average Basic Shares Outstanding - Class C Common | 383 | 383 | ||||||
| Weighted Average Diluted Shares Outstanding - Class C Common | 383 | 383 |